Santa Clara County 2017 Real Estate Report

In our earlier post we reported the 2017 year-end results for some of the cities in San Mateo County. Today’s focus is on some of the communities in Santa Clara County.

In 2016 the real estate market showed signs of slowing down during the last half of the year, and 2017 began with uncertainty about how the real estate market would perform. The year started off with heavy rain and that delayed getting some homes on the market, but by February it was clear that the market was rebounding. Most communities closed the year exceeding the results for 2016.

Below is a high level summary of market measures for several cities in Santa Clara County.

Number of Sales

Area

2016

2017

% Change

Santa Clara County

10,465

10,826

+3.45%

Los Altos

261

332

+27.20%

Los Altos Hills

98

94

-4.08%

Palo Alto

371

356

-4.04%

(Source MLSListings.com)

Average Days on Market

Area

2016

2017

Santa Clara County

27

21

Los Altos

20

18

Los Altos Hills

52*

36

Palo Alto

23

20

(Source MLSListings.com)

*In Los Altos Hills four homes were on the market for over 200 days prior to selling, including one that finally sold after 763 days on the market. When these four homes are excluded, the Average Days on Market for Los Altos Hills for 2016 is 35 days.

Median Sales Price

Area

2016

2017

% Change

Santa Clara County

$1,015,000

$1,171,877

+15.45%

Los Altos

$2,710,000

$3,018,631

+11.39%

Los Altos Hills

$3,862,500

$3,881,000

+0.49%

Palo Alto

$2,550,000

$2,950,000

+15.69%

(Source MLSListings.com)

Sales Price to List Price Ratio

Area

2016

2017

Santa Clara County

102.8%

106.0%

Los Altos

104.4%

107.1%

Los Altos Hills

98.1%

101.8%

Palo Alto

104.0%

108.1%

(Source MLSListings.com)

Market Trends by Community

Los Altos Year-end 2017

The annual Sale Price to List Price ratio rose to 107.1% up from 104.4% in 2016The 2017 Median Sales price increased to $3,081,631 up from $2,710,000 in 2016.Over the past 5 years more homes are sold during Q2.The Average Days on Market decreased from 20 in 2016 to 18 in 2017.

Los Altos Hills Year-end 2017

The annual Sale Price to List Price ratio increased to 101.8% in 2017 compared to 98.1% in 2016.The Median Sales Price increased slightly from $3,862,500< in 2016 to $3,881,000 in 2017.More homes were sold during Q2 than in any other quarter.The Average Days on Market declined to 36 in 2017 compared to 52 in 2016. In 2016 there were 4 homes that had been on the market for over 200 days.

Palo Alto Year-end 2017

The Sale Price to List Price ratio is a good gauge of buyer confidence and motivation. In 2014 the annual ratio was 113.7%, followed by 112.5% in 2015. The annual ratio dropped to 104% in 2016. For 2017 the ratio rose gradually over the year, averaging 108.1%.The Median Sales Price rose from $2,550,000 in 2016 to $2,950,000 in 2017, an increase of 15.69%.More homes sell during the second quarter.The Average Days on Market decreased to 20 days.

Palo Alto’s real estate market is the bellwether for Peninsula real estate. Buyers are attracted to the sense of community, the beautiful neighborhoods, the outstanding public schools and the proximity to trendsetting companies. We have noted over the past several years that as prices escalate some buyers in the high-end are open to other nearby communities where they can purchase larger properties and newer homes. This past year, in particular, many properties priced in the upper quartile of the market took longer to sell and some were taken off the market without selling.

The new real estate year is just coming to life in mid-January and we are starting to see new properties come on the market. We believe that low inventory will continue to be the driving factor of the market and we expect buyers to continue to compete for the available homes.

Our next few posts will address some of the hot topics affecting residential real estate so that you can stay informed.